They determine the hardware installed from a set of keys that are sent to the activation server when you activate the product.
In Windows XP more than three changes of hardware devices at once or in a set period would force an activation. The new hardware key set would then be sent to Microsoft.
In this case, should the Key that provides the motherboard description be changed, and all its components such as north/south bridge BIOS id etc change then it would be determined that this is a motherboard change and not the "original" computer, and therefore would not be activated.
Microsofts Licencing says that the Motherboard is the only component that will force a new licence requirement, as that is significantly large a piece of hardware to warrant it not being an original machine.
The Graphics Board Memory hard drive etc is not defined in their rules as far as I can see and therefore would not stop the system from being reactivated once re-installed.
As I said in my early post, the OEM version of the software has to be supported by its system manufacturer, when the motherboard has been upgraded then it is no longer the original system, and the manufacturer cannot be expected to support a computer that they did not build, the OEM system is designed for the hundreds of small System builders that build for customers, and its them that its designed for.
Shunts...